BitMart reserve doubts raise custody concerns: Arch CTO

BitMart’s missing proof-of-reserves report and withdrawal complaints from two crypto projects have raised fresh questions about how customer assets are held during the exchange’s wind-down. Summary Arch Lending’s CTO called for independently verifiable custody before platforms face withdrawal pressure. OpenGradient and Scandic Coin have reported inaccessible or delayed BitMart withdrawals. BitMart has denied misusing customer funds but has not disclosed verified reserves and liabilities. Trading will stop on Aug. 26, ahead of the platform’s planned closure in January 2027. BitMart concerns expose verification problem Arch Lending co-founder and CTO Himanshu Sahay said questions about withdrawals and exchange closures expose the difference between assurances offered by a platform and financial information that customers can independently check. “Whenever questions arise around withdrawal processing or exchange wind-downs, it points to a structural gap across digital asset markets: the difference between platform-level statements and independent verification,” Sahay said in a statement to crypto.news. Customers often have no real-time method for establishing whether an exchange holds their assets in segregated accounts or combines them with funds used for other operations, according to the executive. Uncertainty increases when withdrawals slow because customers must rely on the same company processing their requests for information about its financial condition. You might also like: BitMart shuts down trading as BMX crashes more than 60% Sahay said the crypto industry already has tools that can reduce such uncertainty, including third-party custodians, reserve attestations, and strict asset segregation. Their value depends on whether customers can use them to verify solvency claims before operational problems emerge. “This isn’t a new issue, but a recurring one that resurfaces whenever a platform faces operational stress.” BitMart stated in May that it was preparing a proof-of-reserves report after earlier complaints about account restrictions and withdrawal access. The exchange said it would release the report once security and risk-control matters had been addressed, but it did not provide a date. No comprehensive report had been published as of Aug. 12. BitMart has also not released independently verified data covering both its assets and liabilities, leaving outside parties unable to establish whether the exchange holds enough liquid assets to meet all customer obligations. Withdrawal complaints add pressure on BitMart OpenGradient co-founder Matthew Wang alleged on Aug. 10 that his project’s market-making team could not withdraw balances held on BitMart. Wang accused the exchange of insolvency and questioned why it had encouraged token holders to lock assets shortly before announcing its closure. “Our MM has our balances stuck on BitMart exchange that we can’t get out,” Wang said. Wang did not disclose the amount or composition of the assets held by the market maker. His insolvency accusation has not been independently verified, and no confirmed evidence currently establishes that BitMart’s liabilities exceed its available assets.